South Korea Plans Crypto, Stock Influencer Disclosure Rules
South Korea is preparing measures that would require social media personalities who promote cryptocurrencies and stocks to disclose their holdings and any paid promotions, according to a report from Korean-language business outlet Herald Business.
Democratic Party lawmaker Kim Seung-won, a member of the National Assembly’s Political Affairs Committee, is drafting amendments to the Capital Market and Financial Investment Business Act and the Act on the Protection of Virtual Asset Users, the report said.
Under the draft, individuals who repeatedly provide investment advice or receive compensation to encourage the public to buy or sell financial products or virtual assets would be required to disclose any compensation received and the type and quantity of assets they hold. The rules would cover publications, online communications and broadcasts, with detailed standards to be established by presidential decree.
Noncompliance could carry penalties comparable to those for market manipulation or insider trading, according to the report.
Lawmaker cites risks from “finfluencers”
The initiative seeks to reduce conflicts of interest and increase transparency in online investment promotion. Kim said that so-called finfluencers are offering investment views to broad audiences from positions of significant public influence, sometimes without compensation, and that such activity can spread inappropriate information, create conflicts of interest and lead to unpredictable investor losses.
The move follows a rise in Financial Supervisory Service data on reports involving quasi-investment advisors (QIAB) — entities that provide general investment advice through media — which increased from 132 in 2018 to 1,724 in 2024, the report added.
Global regulators tighten oversight of finfluencers
Authorities in other jurisdictions have taken similar steps. The United Kingdom’s Financial Conduct Authority permits financial promotions only with prior approval (FCA guidance), while the United States Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) have imposed penalties related to undisclosed promotions.
Last month, Italy’s market regulator, the Commissione Nazionale per le Società e la Borsa (CONSOB), circulated new European Securities and Markets Authority (ESMA) guidance clarifying that European Union investment and advertising rules fully apply to social media finfluencers, including those promoting crypto and other high-risk products.
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